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Why RIM will not suffer the same fate as Canadian giant Nortel

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RIM is for many both a great smartphone manufacturer and a source of patriotism. It’s a leader in the ITC (Information and Communications Technology) sector and their executives, especially Jim Balsillie, are quick to point out that it’s a Canadian firm.

This brief description may remind you of another Canadian firm: Nortel. Nortel was also a source of Canadian pride as a prominent, high-technology firm based in Canada.

Both companies, due to their size and influence, have a notable impact on the Toronto Stock Exchange. While RIM occupies about 3% of the TSX, Nortel once accounted for more than one-third of the main TSX index.

Although there are a few similarities in the two companies, they are completely different and it’s safe to say that RIM will not suffer the same fate as Nortel.

Management at Nortel was infamous for receiving millions in incentives that promoted unethical business practices. In 2004, several of its top executives – including former CEO Frank Dunn – were accused of cooking the books to inflate profit numbers, resulting in millions of dollars of bonuses to these individuals. Last year, criminal charges were laid against Dunn and others.

Jim Balsillie got in trouble with the the OSC which alleged the executives backdated and repriced stock options using dates on which the market price of RIM’s shares was relatively low. Handing out options at the lower prices had the effect of improperly enriching the recipients and, the OSC alleged, could have deprived RIM of about C$66 million.

While both companies seem to be involved in some shady practices, they can’t really be compared because they are on completely different scales. The result of the Nortel scandal resulted in billions in losses for shareholders. The result of the RIM and OSC case was that Balsillie paid a penalty of C$5 million ($4.1 million), while Co-Chief Executive Mike Lazaridis paid a C$1.5 million penalty. The two also paid investigation costs to the regulator.

According to Kevin Restivo, a communications technology analyst at IDC Canada, “RIM and Nortel are very different companies,” he said. “Other than the fact that they’re both based in Canada and both publicly traded companies in the ICT sector … the companies’ histories and similarities separate pretty quickly.”

Some point to competition in the telecom industry, coupled with the crippling accounting scandal, resulted in Nortel’s eventual demise. The telecom industry began to see a large number of mergers such as Alcatel-Lucent and Nokia Siemens Networks, which left Nortel at a disadvantage. With the accounting scandal at hand, the company was in no condition to recover and eventually had to be protected from bankruptcy and sold off.

It’s competition that is also the popular topic when discussing the future of RIM. The difference is that competition will actually make RIM stronger in the end. Sure, market share in North America is fluctuating given sales of the iPhone, but can anyone prove that Apple sales have a negative impact on RIM’s growth? The App Store led an evolution in the market that RIM is still generating considerable profits from, having followed the trend with App World. Competition is also increasing the overall number of smartphone users, and this trend is helping to increase sales for RIM. Other smartphone manufacturers may represent competition, but for some reason the Palm Pre is often cited. Remember, Palm only sold 810,000 units last quarter compared to 8.9 million devices for RIM.

So while these two companies represent the talent that Canada possesses in the ICT world, they will have two very different fates.

[Via]

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BlackBerry Operating Rules in the Canadian Government

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Alastair Sweeny is a Canadian publisher, historian and author. He is best known in the BlackBerry industry for publishing his book BlackBerry Planet: The Story of Research in Motion and the Little Device that Took the World by Storm.

From a published excerpt, we get some insight into how BlackBerry shapes some government institutions. From the excerpt:

Ottawa, Ontario, Canada, is a political town, chock-full of BlackBerry addicts. Overall, the city shares with Washington, D.C., a kind of frantic machismo about using the device. Prime Minister Stephen Harper does not use a BlackBerry, but his staffers and most other politicians on Parliament Hill are dependent. All members of Parliament (MPs) and their staffs are given four BlackBerrys by the office of the Speaker of the House.

Former Liberal MP and financial author Garth Turner is a self-confessed connection junkie, who sleeps with his BlackBerry next to his bed. Turner particularly hates long flights when his precious device no longer works. “Travelling is hard enough,” he says, “but travelling without your BlackBerry vibrating reassuringly on your hip is absolute digital hell.”

Durham MP Mark Holland says he felt “phantom vibrations” when away from his device for three days, and notes that there is a BlackBerry-driven “subconversation” going on all the time in committee and in the House. There is also an “emergent BlackBerry etiquette,” where it’s okay to use the device, even at a dinner, when everybody else is also tapping away, but it’s important to be aware if there are any-non addicts in the room who might be insulted.

But there are islands of sanity on Parliament Hill. All parties ask their MPs to check their BlackBerrys at the door of caucus meetings, and the Liberal party caucus even went so far as to pass a rule banning them outright. You can also find a few people off the Hill with some decent perspective on RIM’s invention and how it ought to be used.

Dick Fadden is former deputy minister of Citizenship and Immigration in the government of Canada. (In June, 2009, he was appointed head of the Canadian Security Intelligence Service). Fadden became a hero to his department and to scores of government employees when in January 2008 he banned BlackBerry use for business from seven o’clock at night and on weekends. Well, not exactly banned. Fadden called the new policy “operating rules,” designed to help “attack some of the stresses around work”:

- BlackBerry blackout between the hours of 7:00 p.m. and 7:00 a.m. and on weekends and holidays;

- Meetings should not be held during the lunch hour;

- BlackBerrys should not be used during meetings;

- Meetings should start and finish on time as a means of managing workloads.

I visited Fadden a year after the famous memo and asked him whether the policy had any effect. Right away he said, “Look, we consider the BlackBerry has great value in the department. It’s a useful tool and boosts productivity. But it has to be managed.”

I asked him whether he had done any analysis of the BlackBerry blackout. He said he brought it up regularly with his managers and found “the main result was a major drop in the amount of e-mail delivered in the department. Although it is creeping up again.”

How did Fadden manage his own personal use as a senior public servant? He said he never uses e-mail on his BlackBerry, but only PINs or sends messages for security. E-mail stays on his PC. He turns his off at 11 at night, but of course he still has to be available for emergencies by phone 24/7.

Fadden says public reaction was mixed to his policy. Some newspaper letter writers said he should “get a life” or “join the 21st Century.” One senior manager sniffed that the BlackBerry blackout was “a stupid decision that pretends to deal with the real issue of workload and stress. So would we have banned telephones on bureaucrats’ desks at the turn of the century?”

But overall the policy struck a nerve.

People in Fadden’s department were clearly suffering under the onslaught of e-mail and the expectation of being always on. They knew they needed to manage their addiction and attack their BlackBerry abuse. One employee told CTV News, “We’re feeling the pressure trying to get a lot of stuff done in a short period of time and the fact that they’re recognizing our families are suffering the consequences of it, I think it’s a great idea.”

I asked Fadden why these kinds of operating rules were not more popular and why they weren’t government policy across the board. He said other departments were bringing in similar guidelines to a greater or lesser extent, but that it was not something that should be imposed from above. Policies had to be tailored to each department, and managers had to be convinced they were useful in their particular cases.

Fadden acknowledged his measures might seem a “bit artificial” to some. Obviously you had to be flexible and recognize that some meetings had to go on longer or you had to keep your BlackBerry on at critical times. But finding ways to respect the needs of employees to balance their work and life was worth it. And the very fact of having a policy — not a ban — still makes people aware of the dangers and time-wasting if they don’t respect others in the amount of e-mail they send.

Linda Duxbury, a professor at Carleton University’s Sprott School of Business in Ottawa, hailed Fadden’s move as “visionary” since, in her opinion, many people in the public service were too “wired” to do their jobs efficiently and productively. “Good for him, it’s the kind of leadership the public service needs, and this is leadership because he’s doing something that is not easy. The whole public service revolves around the BlackBerry and being available 24/7 and he’s the first to go beyond talking about balance.”

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RIM Widget SDK does not support camera or native mapping

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Rhomobile make open source development software that allows a developer to build great native software with more familiar code. The company recently wrote about the launch of RIM’s Widget SDK on their blog, and it points out the fact that web development for mobile is a trend in the industry.

From their blog: “The good news for us is that RIM’s announcement is just part of a much larger trend. Nokia also does this with their Web Runtime toolkit. iPhone developers have many options to use web skills for rich native apps: either our Rhodes framework or frameworks such as PhoneGap, Corona, Titanium or Nimblekit. Android developers can write native apps with HTML using Rhodes, PhoneGap, Corona or Titanium. With third party JavaScript libraries such as JQTouch for iPhone and Android (which we highly recommend and use often in combination with Rhodes apps) such apps can have all the animated pop and dazzle of something you might write in Objective C. Without the pain of throwing away 25 years of progress in more advanced programming languages.

To take a closer look at what RIM has delivered it does appear that it’s still a subset of what we offer with no camera support and no native mapping. The big difference however is that we’re the only framework available for all smartphones and the only framework that provides synchronization (an easy way to enable current information to be available locally on user’s devices even when they are offline). I’m excited about seeing BlackBerry developers use the Widget SDK to learn “web-based for native” and then be that much more ready to use our framework on other devices and to upgrade what they’ve done for BlackBerries to be true enterprise apps, complete with synchronized data.”

Interesting that Rhomobile points out the SDK has no camera or native mapping support. While the camera and maps are not all that common in a basic app, it is still very limiting to not offer the services for developers. Have any developers out there began delving into the Widget SDK to confirm?

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AddOnis All in One BlackBerry utility now on sale

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AddOnis is an all-in-one utility pack for your BlackBerry and it’s today’s Deal of the Day.

Upon installation, AddOnis imbues your BlackBerry with a wide variety of features that are normally packed into multiple utilities. This software extends the system functionality, enabling features missing from the system that make your device easier and more efficient to use by adding all of the choices you always wanted to your menu selections.

Click the purchase link to view the full feature set on the download page.

AddOnis : “The” All-In-One utility for your BlackBerry! Retail price $9.95 and today it’s 40% off, making it $5.97, a savings of $3.98!!

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Unlocked T-Mobile BlackBerry Curve 8520

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The good folks at Cellfservices unlocked a T-Mobile BlackBerry Curve 8520 for us. If you’re looking for a cheap way to unlock your device, you can get some decent deals on their site. Here are some of the prices:

AT&T Blackberry – $6.97
Rogers Blackberry – $6.97
Fido Blackberry – $6.97
T-mobile Blackberry – $6.97
Verizon Blackberry – $12.97
Telus Storm/Tour Blackberry – $37.97
Bell Storm/Tour Blackberry -$37.97
Sprint Blackberry Tour – $37.97
Non-North American Blackberry – $37.97

These promos will be on until next week Monday. 

So if you’re traveling for the holidays, it makes sense to unlock your BlackBerry. You will recover the cost by avoiding roaming fees very quickly.

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Orbit social phonebook application for BlackBerry preview

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While it isn’t yet available, Trilibis Mobile have sent over some details and a screenshot of a new social phonebook application that they’re launching in Q4 of 2009 called Orbit.

Orbit is described as a free social phonebook that cleverly organizes all of your communication channels: voice, text, e-mail and social networking.

The app has a unique system of prioritizing and organizing contacts in your social networks so you can decide how often and how much information you receive. The app syncs with your phonebook, and then you can add additional contacts from Facebook and Twitter.

The application is probably best described in the feature set:

  • Improved Core Controls – Use your Orbit phonebook just like your existing phonebook; make calls, send text messages and e-mails. Orbit includes an enhanced A-to-Z scrolling feature to greatly improve the navigation of contacts on touch screen devices.
  • Orbits – Create an “Inner Orbit” for your closest friends. Add additional Orbits such as college friends, colleagues or family members, making it easy and convenient to keep track of everyone’s updates.
  • Social Volume – With Orbit’s unique “Social Volume” control, you can control the level of communication from your groups of contacts whether by time of day, day of week, type of feed, birthdays, etc.
  • Connected Phonebook – Rest assured! Orbit’s contact information is always updating so you will always be “in the know.” Orbit organizes and consolidates your contacts and auto-generates a favorites list based on the people you communicate with the most.

While the app isn’t currently available, you can sign up to be notified of its launch.

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Play Texas Hold’em King 3 and win an iPod Touch and cash

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Bplay is running a contest right now where you can win daily prizes, an iPod Touch and $500 USD cash. The contest ends November 7th.

To play, all you have to do is grab a copy of Texas Hold’em King 3, available on a free trial or purchase for $4.99. In game, join the contest mode and submit a bankroll high score. Entries larger than $2,000 are eligible for a daily prize.

To win more, go to Magmic Social and register for the contest. If you have a bankroll larger than $5,000 and are registered, you automatically become eligible to win the grand prize. If you don’t see where do register, look for the “Contest” tab.

Happy gaming!

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Verizon BlackBerry Storm 2 9550 impressions and details

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The new BlackBerry Storm 2 9550 by Verizon is shaping up to be the BlackBerry touchscreen device we’ve all been waiting for. I remember back when Mike Lazaridis was taking criticism for the original Storm and his response was “sorry it was the number 3 selling smartphone in North America. I wish it could have been number 1.” Well this is the second time out the gate and they definitely have it right this time.

Will sales of the Storm 2 beat the original Storm? If the hardware is the deciding factor I would say yes. But what about all those who have bought the original Storm? How many will upgrade? How many new touchscreen BlackBerry users will this device convert? These are all questions that will have to wait to be answered until after the device launches, which we expect to happen in early November. Some are suggesting late October and this could also be true. We’re seeing a lot of leaks happening which means we are approaching launch date. Until then, lets take a look at the pre-release version of the Verizon BlackBerry Storm 2 aka 9550.

Click through to read more about the Verizon BlackBerry Storm 9550

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MemoryBooster half off for BlackBerry Cool readers

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The good people at S4BB are giving BlackBerry Cool readers 50% off their MemoryBooster application, with an offer that extends until October 22nd.

MemoryBooster recovers wasted memory and optimizing your BlackBerry for better performance. By simply hitting the “Boost Memory” button, users can recover up to 9 MB (9,437,184 bytes) or even more depending on your device.

This application has the following features:

  • Boosts your device speed by recovering wasted memory.
  • No New Hardware: Software only solution. No additional hardware needed! Does not influence any other applications.
  • Visuals: Fancy bar charts and textual high performance memory overview.
  • Automatic Background Boosting: Make sure the BlackBerry is never wasting memory!
  • Statistics: Extensive statistical data for effectiveness tracking.
  • Instant Download: OTA and desktop installation available.

To get 50% off MemoryBooster (normally $9.99) use the discount code BBCOOL_BARGAIN in our store.

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Rogers officially launches the BlackBerry Curve 8520

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Rogers has officially launched the BlackBerry Curve 8520 for $99.99 on a three-year voice and data plan. The device, as pictured above, comes in black and the violet device pictured will be available in the coming weeks.

This is a fairly cheap BlackBerry and by far the cheapest full QWERTY device, but the price doesn’t beat Wal-Mart. It should be only a matter of time until this is the first free, full QWERTY BlackBerry.

Anyone buying?

[Picture courtesy of RogersDude69]

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